Aviva has invested £20 million into low carbon housing company TopHat.
This will see the firm build a new factory in Corby, which it claims will be able to manufacture 4,000 low carbon homes each year.
It would be operational in 2024 and become the largest modular housing facility in Europe.
TopHat says that its homes produce just 12% of the carbon that a regular house of the same size would produce.
The business uses Modern Methods of Construction, which 27% of developers state they are looking to use on at least 50% of their homes in the next three years.
This includes energy efficient insulation and air source heat pumps to lower the carbon footprint of the property.
Under the government’s Future Homes Standard, homes from 2025 will be required to produce 80% less carbon emissions than houses that are built now.
John Cummins, CEO, Aviva Capital Partners, said: “TopHat is a pioneer of low carbon homes and this investment will make sustainable housing more widely available, making a difference to communities and providing a retirement income for our customers.”
TopHat Founder Jordan Rosenhaus added: “It has been clear for some time that designing and building green, beautiful homes in factories is a critical part of solving the housing crisis – and today’s announcement will enable TopHat to reach the scale where the new generation of modular homes can be made available to everyone.”